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Welcome. Chartered Institute of Personnel and Development.

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Presentation on theme: "Welcome. Chartered Institute of Personnel and Development."— Presentation transcript:

1 Welcome

2 Chartered Institute of Personnel and Development

3 HR strategies for change HR strategies for change A workshop on the human resource aspects of managing change and building organisation effectiveness Jim Cannon and Roger Niven

4 The reconnaissance visit Many issues identified as important Evaluation and assessment Performance management and rewards Employee development HR planning, utilisation and development Retention Selection What next for FIST

5 What are the HR problems we face?

6 After Arto Lahti The Development of Strategic Thought

7 Michael Porter - Forces Driving Industry Competition Potential Entrants Suppliers Substitutes CustomersIndustry Competition

8 McKinsey’s 7- S - Model Shared Values SystemsSkills StaffStyle Structure Strategy

9 Total business system to deliver value to customers Management systems Technology OrganisationCulture Business Processes Operational excellence Product leadership Customer intimacy Treacy and Wiersema

10 An illustration of technical and adaptive work Height of high jump Years Scissors Western Roll Straddle Fosbery Flop From Richard Pascale

11 The need to involve people Influence Only a few can choose A wider range of experiments and prototypes An infinite number of very small scale improvements After Rosabeth Moss Kanter

12 “Management’s mandate is to minimise risk and to keep the current system operating. Change, by definition, requires creating a new system, which in turn always demands leadership”. John P Kotter 1995

13 Leaders and strategy “I agree … strategy ‘emerges’ … but we are not helpless. Strategy does not simple emerge … it is emergent. By creating the right set of preconditions one can provoke emergence.” “Too often we work on ‘the strategy’, rather than the preconditions that could lead to strategic innovation.” Gary Hamel

14 Improving business results through people Business Results Customer Satisfaction Employee Satisfaction People Requirements Employee Needs Human Resource Strategy: Employment Relationship Human Resources Practices, Policies, Programmes Business Strategy

15 HR roles in building a competitive organisation Management of Strategic Human resources - aligning HR and business strategy by organisational diagnosis Management of transformation- renewing the organisation Management of infrastructure - processes to deliver services Management of employee contribution - listening and responding Strategic Focus Operational Focus Source: Ulrich and Conner People Processes

16 Managing change

17 Exercise: Reactions to change Think of a major change in your life: What were the different reactions you experienced? What helped and hindered you come to terms with the change? If it happened again, how would you handle it differently?

18 A spectrum of reactions Apathy Reactive Loss of interest Passive resistance Active resistance AcceptanceEnthusiasmIndifference Co-operation under pressure Protests “Work to rule” Slow down Intentional errors Supportive Energy Ideas 4.11

19 Complex forces of change Driving forces Restraining forces Forces come from: -outside -the organisation itself -internal groups -individuals Lewin 4.7

20 PERCEIVED COMPETENCE TIME HIGH LOW 2. Rejection Rejection of new reality. Defence of existing initiatives. Detail of problems. False sense of competence re-established. 1. Surprise Immobilisation. Shock, surprise or anger at mismatch between high expectations of performance and the new reality. 3. Uncertainty Sense of anxiety/incompetence. Frustration. Uncertainty about how to deal with new reality. 4. Acceptance Acceptance of new reality.‘Letting go’ of the past. Attitudes and behaviours re-examined. 5.Exploring Testing new behaviours, new approaches. Lots of energy, anger and frustration. Beginning to deal with new reality. 6. Developing Search for clarity. Developing effective ways to respond to new reality. 7.Consolidating Clear insight into new reality. Consolidation of new behaviours. Individual responses to a new reality : The Transition Curve

21 Case study

22 The Levers of Change Self awareness (Do I understand what I need to do differently?) Will (Do I want to change?) Competence (Am I able to change?) Conscience (Is the change congruent with my beliefs?) Pleasure / Fear consequences (Will I benefit or suffer?) Vision (Is this change in line with I want for the future?)

23 The stages of change (J Kotter ) Establish a sense of urgency Create a guiding coalition Develop a vision and a strategy Communicate the new vision Empower employees with broad based action Generate short term wins Consolidate early gains but push on for more change Anchor new changes in the culture

24 Activities for successful change management Avoid over-organising Provide help and support Communicate like never before Managing Ensure early change involvement work at gaining Commitment Turn perceptions of threats into opportunities

25 ‘Crazy time’ Old New ways of doing things crazy time things Start of change ‘end’ of change

26 When to change? Extra work Uncertainty Fight for resources Time “The second curve” Handy Relative performance 4.9

27 Who helps and hinders change? Low Influence on change High Seniority

28 Looking for the positives in any change ‘I learnt something’ ‘I won’t make the same mistake again’ ‘I was more fortunate than some’ ‘Today is the first day of the rest of my life – I can choose to let the past go’ ‘I cannot change history, but I can steer a different path into the future’

29 Group discussion What change strategies have worked successfully for organisations represented here today?

30 Human Resource Planning and Career Development

31 PRIMARY EMPLOYEES - key skills - shared values - commitment SECONDARY EMPLOYEES support skills short-term TEMPORARY EMPLOYEES Agency Sub- Bought-in Staff consultants contractors services The Developing HR Model?

32 Structure of a credit card company. A division of a bank Management2659.9% Middle level staff Junior staff150.5 Agency Total Source: Published accounts

33 Constructing a Human Resource Plan Analysis of existing H.Resources H.R. DEMAND SCHEDULE quality & quantity feedback & review H.R. PLAN Recruitment (input) Training & Retraining (change) Retirements / Dismissals (output) feedback & review - external labour supply - changes in wastage rates H.R. SUPPLY SCHEDULE quantity & quality Corporate plans/ objectives Sales / Output Forecasts Wastage Forecasts changes in utilisation - changes in demand

34 What are the drivers of staff numbers in your business? Staff Categories Key Drivers 2.9

35

36 Productivity measures Activity Output/ person (What drives activity?) Value Cost or Revenue/person cost Opportunity Maximum value produced/hour – actual value produced/hour Note: Consider the effect, attendance and efficiency

37 Productivity improvement Job analysis ‘Bottlenecking’ Benchmarking Suggestion schemes (staff and customers) Trend analysis Zero based budgeting

38 Using activity analysis in the European Commission – a case study Question posed: How many career counsellors were required? Model created to structure assumptions and see the impact of changed circumstances. Set agenda to track actual effectiveness and to clarify more realistic assumptions.

39 European Commission – a case study

40 Scenario planning Key Steps: determine scope and timeframe of project identify current assumptions and mind-set of decision makers create alternative, plausible scenarios of how future may evolve, identifying key assumptions and decision points consider drivers of each scenario

41 Scenario planning cont’d... test impact of key variables in each scenario develop action plans based upon: the most robust solutions across all scenarios strategies that leave options open until most-likely scenario is clear critical decisions affecting most desirable outcome

42 Scenario planning Project plan Future scenario A Today’s Environment Future scenario B Future scenario C Signposts Decision Points Today Future Date 1/9 6/9 1/9 6/9 1/9 6/9 1/9 6/9 Project 1 Project 2 Scenario A or B Scenario A Project 3 Scenario B Project 4 Scenario C

43 an case study on planning Review the notes and information supplied. In groups, consider the questions asked. The Texology call centre

44 Career Development

45 Career Development Planning assessing skills & competencies performance management processes psychometrics 360° feedback assessment / development centres career counselling re-training job changes secondment

46 Career review 1. Personal stock take State: experiences, interests, abilities, motivation Explore: feelings, e.g. boredom, no challenge, outdated skills Consider: strengths, abilities, likes personal qualities 2. Personal requirements for the future are skills being properly utilised where might they be better employed is job enhancement a possibility?

47 3. Consider alternatives in company - different departments spare time occupation other companies in same sector change of occupation analysis of the market place 4. Plan of action new horizons job search strategy skills update self - marketing

48 I WANT REALITYI AM ABLE

49 What do I want to do? Moderate risk Research? Low risk Job seeking? High risk Long term? Moderate risk Retraining? Same work Different work New sectorSame sector

50 Tools for improving utilisation Competency framework Skills transition matrix Succession planning Human Resource Plan template

51 Skill Transition Matrix Entry Level Basic requirements; Qualifications, experience, competencies (% who will remain in 1 year, 3 years) From Job A Ongoing training to maintain satisfactory performance Additional skills, competencies. Time to retrain, (% likely to do job) From Job B Additional skills, competencies. Time to retrain, (% likely to do job) Into Job A Into Job BInto Job C

52 JOB TITLE JOB HOLDER MANAGER J. BLOGGS ‘49 B 3 YEAR OF BIRTH PERFORMANCE RATING (A-E) PROMOTABILITY INDEX (1-3) PHILLIPS EATON IDENTIFIED REPLACEMENTS MANAGER J. BLOGGS ‘49 B 3 PHILLIPS EATON HUNT ARNOLDHUNT - SUPERVISOR I. PHILLIPS TECHNICIAN G. EATON ‘53 A 1 ‘60 B 2 Succession Planning Chart KEY

53 Succession Planning - Ratings Performance Rating: A - ‘exceeds expectations’ B - C - ‘satisfactory performance’ D - E - ‘unsatisfactory performance’ Promotability Rating: 1 - ready now 2 - likely to be ready during next 24 months 3 - not ready for promotion

54 Career Development Records Minimum information required: 1. name & present position 2. date assigned to current job 3. latest performance rating 4. Promotability rating 5. target date for expected move 6. actions required to prepare for (5) plus record of training / development actions

55 Career & Succession Planning Problems And Issues the ‘Prince’ and the ‘Pauper’ people are unpredictable planning and the forced choice planning and the self-fulfilling prophecy prediction in a world of change performance v potential expectation and ambitions ‘as is our confidence so is our capacity’ opportunity and its prediction the politics of judgement potential for what, in growth and decline

56 What should follow the FIST programme for FIST participants?

57 Company groups Review the work we have done today Identify any aspects that may be applicable to you Discuss any actions you need to take to introduce these ideas What further do you need to know from the tutors and others to take these ideas further.

58 Welcome to day 2 What were the key points for you from yesterday Any queries and questions?

59 Performance management

60 How do we get people to perform? Situation Performance

61 How do we get people to perform? Situation Vision Behaviour Culture Mission and goals Group feeling Policies Strategy Structure Needs Procedures Skills Freedom Performance

62 Balanced scorecard an example from an international bank People Strong leadership team High quality people at all levels Diversity, fairness and opportunity Commitment to employee success Financial Maximise SVA over time Processes World class efficient processes Strong preventative and detective controls Key performance indicators Innovation and continuous improvement Clients Market leadership Product excellence Outstanding customer service Vision and Strategy

63 Measures Financial – share price, Price/ earnings, ROCE Clients – Market share, product comparisons in focus groups, service failures, customer surveys Processes – Benchmark comparisons, mistakes, performance against Key Performance Indicators People – Absence, turnover, attitude surveys, upward feedback

64 Case study

65 Assessment and Selection

66 A model of good selection Define the job to be done – the job description Specify the ideal candidate – the person specification Technical experience and knowledge Behavioural criteria Define the selection method Attract suitable candidates Assess Attract, appoint and induct

67 Selection methods Application form Interview Competency based Panel interview Tests Group discussion Report / presentation Assessment centres

68 Assessment – a banking example Exceeded performance standard29.3% Met standard70.0 Failed0.7 Source: Monthly HR statistics

69 Retention

70 Controlling Labour Turnover expect labour wastage reduce its impact be competitive in labour market emphasise areas of satisfaction reduce areas of dissatisfaction analyse reasons for turnover use feedback to change management systems / practices

71 Some Factors Affecting the Decision to Leave Individual joins Temporarily committed Reference group behavior. Value system, performance feedback. Pay structure. Chances of promotion expectations, knowledge of other opportunities. Reason for joining Male/Female marital status Un- decided Decision to leave External labour market Needs and satisfaction = Need contribution balance More permanent committed Ill health & death retirement financial inducement Termination Critical factor ‘Last Straw’ Age, grade, length of service, skill type; level

72 Employer Influence On Labour Turnover most firms are ACTUALLY here but…. THINK they are here high EMPLOYER INFLUENCE Bevan 1988 low Internal labour market causes External labour market causes

73 Tactics for Reducing Turnover be the best in town work hard at labour retention pilot schemes establish positive role models research where staff come from allocate v select/reject train and retrain restructure work career pathing

74 EXIT INTERVIEW - COMPANY CASE STUDY A SURVEY OF 177 PEOPLE WHO LEFT OVER A SIX MONTH PERIOD 5.15

75 Employee development

76 Training needs analysis Desired performance minus Actual performance Gap Training needNon-training need

77 Non-training factors affecting behaviour / performance Organisation Personnel practices Job design Supervision Environment Information systems Non-work problems and worries

78 Some current ideas Leadership is for all Skills, behaviours, beliefs Leadership is about: Behaviour Coaching Emphasis on vision and values Reading situations Mentoring Self-awareness 360 feedback Choices Management of time and attention

79 Strategies for matching how we learn to needs at different levels ActivistTheoristReflectorPragmatist Organisation EventsPresentationsVisibility ofPractical support Conferenceson strategysenior managers TeamT eam problemGoal settingObserve expertsAble to experiment solving IndividualL earn by doing‘why do I need to Coach/mentorflexibility to find know that or do it?’the best way for me

80 Company groups Review the work we have done today Identify any aspects that may be applicable to you Discuss any actions you need to take to introduce these ideas What further do you need to know from the tutors and others to take these ideas further.

81 Thank you for coming Roger Niven and Jim Cannon


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